The Dow has Hit a Bottom 6440 - My Opinion

That's right I think the Dow Jones Industrial average has finally hit a bottom. I believe that the low it hit on March 9th of this year, around 6,440.00, will be the bottom. From here on out the Dow will not touch or fall below 6440 (In my opinion).

Here are a few reasons why I think the Market has finally bottomed:

#1 Investor Sentiment is at an all time low - You would think that means the markets will continue to slide, however its the opposite. When investors all think the sky is falling, that means they are all out of the market, have sold everything they will have sold, meaning the supply of shares are limited. Even small amounts of neutral or good news will move the markets higher.

#2 Retail Sales are Leveling off - The last 2 months, retail sales have gained, if you don't account for the loss in automobile sales. This is a leading indicator that the markets are about to turn.

#3 Banks are reporting good numbers - That's right, CitiGroup and the other troubled banks have reported that they are profitable this year so far. Although I'm sure more write offs will come, this is a sign that things may be getting better.

#4 Irrational Pessimism - Just like Alan Greenspan claimed there was Irrational Exuberance in the Markets of the early 2000's, today we have the opposite. The world is not coming to an end, yet they are trading like it. The slightest good news will change this, and quickly drive buyers into the market.

As a disclaimer, I am not an expert by any means. These are my own predictions, so you should not be investing your life savings into stocks. Make your own decisions. This blog is here and written on commission for Stock forums